- Use of SMF ArtworkNaturally, you are allowed to freely use images that are included in the SMF package and cross one themes images into another. Images that are used exclusively in 2.0 and are taken back to 1.1 can be used, but they do need to actually be used in the templates. This also applies to any images in your theme - they all must be used, or should not be in the package.As a note: If you are planning on using SMF images in other software packages, this must be approved by Simple Machines LLC first.

what about the template files themselves? is one allowed to sell modified design (assuming one will provide all other artwork such as images and icons, etc)?I am not asking about customizing a theme for somebody, but actually selling a theme that base on one of default themes (CODE ONLY)?

that is where the flaw is in license and this is one reason we the friends asked for new license, technically your not allowed to, but in all hinesty you can, an exception is made on theme (otherwise Bloc etc be sued)